IMF Warns of Increased Flash Crash Risks in Tokenized Markets

According to BlockBeats, the International Monetary Fund (IMF) has issued a warning about the heightened risk of flash crashes in tokenized markets, prompting potential regulatory intervention by governments. The IMF highlighted that while tokenization can facilitate faster and more cost-effective financial transactions, it also introduces new systemic risks. Automated trading could lead to increased market volatility and a higher likelihood of flash crashes. Complex smart contract chains may trigger a domino effect under market stress, turning localized issues into systemic shocks. The IMF anticipates that, based on historical trends, governments will not remain passive during this significant monetary evolution and are expected to take a more active role in the tokenization sector in the future.